Economic Contribution of Cruise Tourism
2008/2009
• Total Cruise Tourism Expenditures 39.4*
• Total Employee wage income 12.9 *
• Passengers onshore visits (thousands) 407.5
• Average expenditure per passenger $71.70
• Total passenger expenditures 29.2*
*
($US Millions)
Source: 2012 BREA Cruise Analysis – The FloridaCaribbean Cruise Association
http://www.f-cca.com/downloads/2012-CruiseAnalysis-vol-1.pdf
The Development of an Industry:
The Value Proposition
of Mega Pier 2
The popularity of Curaçao as a cruise tourism destination has increased significantly in the last decade, with
the picturesque image of the Handelskade “liked” the
world over. From 2012 to 2014 alone, the number of passengers has seen an increase of 150,000, bringing the
number of cruise visitors to approximately 600,000 at the
end of 2014 – an increase of 30%.
TEXT PRISCILLA LOTMAN
Though Curaçao is still often referred to as “the island next to
Aruba,” that perception is changing as the island is being cast
as the “best-kept secret in the Caribbean.” Kevin Sheelan, the
CEO of Norwegian Cruise Line Holdings, has labeled the island
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as a “quality destination,” and the customers of Royal Caribbean
International ranked Curaçao as one of their favorite destinations. A dedicated Ministry of Economic Development, input
from the Curaçao Ports Authority (CPA) and the expectation that
cruise lines will plan additional routes for more of their larger
vessels to visit the island in the future, provides enough impetus
to build a second mega pier.
The Rif Seaport Curaçao
The construction of the pier will start at the end of 2015 or early
2016. However, the project is in progress and construction of
the landside development will start next year. CPA and the project team are meeting with Royal Caribbean International and
Carnival Cruise Lines in December 2014 to negotiate the possibility of getting the companies onboard for the project as financial stakeholders. “Subsequently, local investment institutions
will be approached for the remainder of the funding,”
said Vernon Huerta, chairman of the project team. The
total cost of the project is currently estimated at USD 50
million.
The Rif Seaport project has two main components; the
mega pier and the upland development. The upland
development will include cruise facilities, which will
be a public area dedicated to showcasing the island.
The collaboration of CPA and the project team with
the Punda merchants and other local entities is a key to
ensuring the upland development will add value for the
arriving tourists and the stakeholders in the project, as
well as the island as a whole.
With a construction period of approximately 18 months,
cruise passengers and locals alike should be enjoying
costs. Though this is significantly lower than the income
from stay-over tourists, it is still a notable contribution
to the overall income of the island. “Every tourist is an
opportunity to expose our island,” said de Castro. “The
opportunity here lies in impressing each tourist enough
for them to consider visiting the island once again for a
longer period of time or recommending it to their friends
and family.”
The goal for Curaçao’s cruise industry, de Castro added,
is to increase the number of cruise visitors to 1,000,000
per year and increase their spending from USD 70 to
USD 100, on average. “This is an attainable target based
on the growth we’ve been experiencing in the industry,”
he said. With the building of a second mega pier, the
government and CPA are anticipating what the cruise
Humberto de Castro
Though Curaçao is still
often referred to as “the
island next to Aruba,” that
perception is changing as
the island is being cast as
the “best-kept secret in the
Caribbean.”
the area in 2017. An important objective is to move the
so-called “security line” to the edge of the pier to ensure
the cruise village could also be enjoyed by the local
community. “In addition to the landside development
being an attractive entertainment area, we have always
looked at it as a logistical center,” said Humberto de
Castro, managing director of CPA. “The Rif Seaport is
not the destination, Curaçao is. Tourists will always be
encouraged to explore the island; whether via a tour or
simply strolling down the walking path to Punda, and
the upland infrastructure will be the logistical hub.”
Curaçao’s Cruise Tourism Industry
According to the Business Research and Economic
Advisors (BREA), a market research firm specializing
in the travel and leisure industry, a cruise passenger
spends USD 70 on average in Curaçao. This results in
the annual revenue of USD 40 million a year from cruise
tourists for the island. According to de Castro, this
number excludes the so-called “head tax” and piloting
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industry will look like 10 to 20 years down the road and working
on preparing the island for the subsequent increase of vessels and
tourists.
Since the Southern Caribbean is becoming a desired destination,
the itineraries of the larger vessels, in particular, are increasing from 7 to 10 days. The second mega pier will be able to
handle larger vessels, such as the Freedom Class ships of Royal
Caribbean, and approximately 8,000 passengers on any given
day. “To meet the requirements of this growth, the Rif Seaport
project team is speaking to its stakeholders, taxi’s, tour operators, catering companies, Punda shop owners and the customs
authority, amongst others, to ensure the island is ready for this in
2017,” said Huerta.
The Environmental Impact
The Superior Producer, a freighter that sank in 1977 just outside
the harbor and now a popular dive location, is situated near the
planned area for the second mega pier. There have been many
discussions about how this unique diving spot will be preserved. “We are working with Carmabi to ensure that we address
each issue that is related to the environment for this project,”
emphasized de Castro. Using sound-depth measuring devices,
the project team has confirmed that the wreck is located deeper
than where the pilings will be placed. De Castro added, “At the
moment there is every indication that the sight will remain intact.
Together with Carambi, the project team and CPA intend to look
into the possibilities of anchoring the wreck during the construction period to minimize any movement due to vibrations.”
Another consideration is the state of the mangroves near the
Rif Seaport area. At the moment, superfluous sewage, due to
occasional power outages, is being dumped in the mangrove
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With a construction period of
approximately 18 months, cruise
passengers and locals alike
should be enjoying the area
in 2017.
area. The result is a breeding nest for mosquitos. According to de
Castro, Carmabi is currently battling this problem. He went on to
add, “We should not be polluting this area. We need to consider
other options, such as holding tanks, for the management of this
waste.” CPA and Carmabi are both determined to find a solution.
Preserving the island’s environmental state is and will always be a
vital undertaking for the population as a whole and will ensure the
island maintains its beauty for all to enjoy for decades to come.
Conclusion
Tourists, whether they arrive by plane or on a ship, come to
Curaçao for its pristine waters, cultural experiences and its
historic downtown area. To remain competitive and continuously develop the reputation of the island in the tourism industry,
infrastructure developments are necessary. The second mega
pier, according to CPA and the project team, is unambiguously
part of this development. Stakeholder collaboration, environmental considerations and consensus are all vital to the success of the
Rif Seaport project and its goal to be a valuable addition to the
island.